Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.19.1
Segment Information (Tables)
 6 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Schedule of financial information for each of the Company's business segments
The table below provides certain financial information for each of our business segments.
As noted in "Note 1. Organization and Basis of Presentation," we have made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and six months ended March 31, 2018, are presented differently from those shown in previous filings.
From October 1, 2018, we operated our business through three segments.
•Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments work, and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families.
•Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment.
•Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Saudi Arabia and Singapore.
  Three Months Ended March 31, Six Months Ended March 31,
(dollars in thousands) 2019  % (1) 2018  % (1) 2019  % (1) 2018  % (1)
Revenue:                
U.S. Health & Human Services $ 290,737  $ 306,249  $ 584,950  $ 610,490 
U.S. Federal Services 289,736  116,327  506,723  249,310 
Outside the U.S. 156,047  190,211  309,466  376,135 
Total $ 736,520  $ 612,787  $ 1,401,139  $ 1,235,935 
Gross profit:                
U.S. Health & Human Services $ 86,260  29.7%    $ 86,586  28.3%    $ 174,291  29.8%    $ 170,817  28.0%   
U.S. Federal Services 60,696  20.9%    27,374  23.5%    108,681  21.4%    60,732  24.4%   
Outside the U.S. 22,466  14.4%    34,843  18.3%    45,715  14.8%    69,214  18.4%   
Total $ 169,422  23.0%    $ 148,803  24.3%    $ 328,687  23.5%    $ 300,763  24.3%   
Selling, general & administrative expense:                
U.S. Health & Human Services $ 29,400  10.1%    $ 36,616  12.0%    $ 61,539  10.5%    $ 71,421  11.7%   
U.S. Federal Services 31,104  10.7%    17,540  15.1%    57,736  11.4%    34,188  13.7%   
Outside the U.S. 17,992  11.5%    18,403  9.7%    36,800  11.9%    36,509  9.7%   
Restructuring costs —  NM 2,320  NM —  NM 2,320  NM
Other (394) NM —  NM 1,698  NM —  NM
Total $ 78,102  10.6%    $ 74,879  12.2%    $ 157,773  11.3%    $ 144,438  11.7%   
Operating income:                
U.S. Health & Human Services $ 56,860  19.6%    $ 49,970  16.3%    $ 112,752  19.3%    $ 99,396  16.3%   
U.S. Federal Services 29,592  10.2%    9,834  8.5%    50,945  10.1%    26,544  10.6%   
Outside the U.S. 4,474  2.9%    16,440  8.6%    8,915  2.9%    32,705  8.7%   
Amortization of intangible assets (9,519) NM (2,603) NM (14,977) NM (5,321) NM
Restructuring costs (2) —  NM (2,320) NM —  NM (2,320) NM
Other (3) 394  NM —  NM (1,698) NM —  NM
Total $ 81,801  11.1%    $ 71,321  11.6%    $ 155,937  11.1%    $ 151,004  12.2%   

(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”
(2) During fiscal year 2018, we incurred costs in restructuring our United Kingdom business. 
(3) Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the six month periods ended March 31, 2019, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business. Refer to "Note 5.  Acquisition of Citizen Engagement Centers Business" for more details.
Schedule of identifiable assets by segment
Identifiable assets for the segments are shown below (in thousands):
March 31, 2019 September 30, 2018
U.S. Health & Human Services $ 478,584  $ 442,063 
U.S. Federal Services 837,844  375,807 
Outside the U.S. 224,274  184,872 
Corporate 147,014  459,258 
Total $ 1,687,716  $ 1,462,000